Correlation Between HUMANA and ProShares UltraShort
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By analyzing existing cross correlation between HUMANA INC and ProShares UltraShort SP500, you can compare the effects of market volatilities on HUMANA and ProShares UltraShort and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in HUMANA with a short position of ProShares UltraShort. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUMANA and ProShares UltraShort.
Diversification Opportunities for HUMANA and ProShares UltraShort
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUMANA and ProShares is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding HUMANA INC and ProShares UltraShort SP500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraShort and HUMANA is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on HUMANA INC are associated (or correlated) with ProShares UltraShort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares UltraShort has no effect on the direction of HUMANA i.e., HUMANA and ProShares UltraShort go up and down completely randomly.
Pair Corralation between HUMANA and ProShares UltraShort
Assuming the 90 days trading horizon HUMANA is expected to generate 3.45 times less return on investment than ProShares UltraShort. In addition to that, HUMANA is 1.2 times more volatile than ProShares UltraShort SP500. It trades about 0.06 of its total potential returns per unit of risk. ProShares UltraShort SP500 is currently generating about 0.24 per unit of volatility. If you would invest 2,496 in ProShares UltraShort SP500 on February 1, 2024 and sell it today you would earn a total of 224.00 from holding ProShares UltraShort SP500 or generate 8.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
HUMANA INC vs. ProShares UltraShort SP500
Performance |
Timeline |
HUMANA INC |
ProShares UltraShort |
HUMANA and ProShares UltraShort Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HUMANA and ProShares UltraShort
The main advantage of trading using opposite HUMANA and ProShares UltraShort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUMANA position performs unexpectedly, ProShares UltraShort can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ProShares UltraShort will offset losses from the drop in ProShares UltraShort's long position.HUMANA vs. AEP TEX INC | HUMANA vs. US BANK NATIONAL | HUMANA vs. Can B Corp | HUMANA vs. Comfort Systems USA |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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